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Figure Figure 1 Growth that compounds

The measured investment share of SG&A by industry

Comparison of standard BEA-HH assumptions versus empirical market-based exit parameters across major industries.

A grouped bar chart comparing standard assumptions with market-based exit estimates across six industry groups. SG&A standard is 30 percent in every group, while SG&A exit ranges from 20 to 51 percent. R&D standard ranges from 17 to 28 percent, while R&D exit ranges from 33 to 50 percent. Standard errors and sample notes remain in the source record.SG&A standardSG&A exitR&D standardR&D exit0%10%20%30%40%50%60%All industriesConsumerManufacturingHigh techHealthcareOther servicesIndustry sectorInvestment or depreciation share (%)
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Reference & Evidence

Source: Data from Ewens, Peters & Wang (2019, revised October 2023), NBER Working Paper No. 25960, Table 1 (p. 47).

Each line is a claim from the register this journal publishes against, resolved from the register at build time.

  • A R&D depreciation is estimated, not assumed, and it moves with R&D intensity: "we find a significantly higher depreciation rate for the two industries with the highest R&D intensity: healthcare (33% vs 17%) and high-tech (42% vs 28%)" Ewens, Peters & Wang (2019, revised 2023), Table 1 · EPW24-C5
  • A The SG&A share is the number the 30% rule stands on, and the paper states both the estimate and its spread: "we find that our 28% estimate of the fraction of SG&A representing invested capital is similar to that used in earlier work (30%)", while "this ratio varies dramatically across industries, from 20% (consumer) to" 51% (healthcare) Ewens, Peters & Wang (2019, revised 2023), Table 1 and section 1 · EPW24-C6

Grades: A, verified against the printed page of the primary source · B, primary source, text layer only · C, authoritative secondary · D, reported.

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